The FBI has recently highlighted the dangers associated with using unregistered cryptocurrency services, potentially leading to severe legal and financial consequences.
Learn how to check the legitimacy of these services through official channels and safeguard your financial assets from unnecessary risk.
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The Risk of Using Unregistered Cryptocurrency Transfer Services
On April 25, 2024, the Federal Bureau of Investigation (FBI) issued a warning to American citizens advising them against using cryptocurrency transfer services that do not implement anti-money laundering measures.
The FBI emphasizes that services not registered as Money Services Businesses (MSB) should not be used. Such services, which do not collect user information through Know Your Customer (KYC) procedures, should be avoided.
This warning comes amid ongoing investigations by the FBI into illegal operators, aimed at preventing general users from getting caught up in the chaos.
The FBI recently implemented law enforcement actions against unauthorized cryptocurrency services, stating that users who utilize these services may encounter financial turmoil during law enforcement activities if their cryptocurrencies are mixed with funds obtained through illegal means.
In the event that specific measures are taken against these companies, ordinary users who utilized their services might find themselves unable to access their assets.
How to Check for MSB Registration
In their announcement, the FBI also introduced methods to verify whether a company is registered with the Financial Crimes Enforcement Network (FinCEN) as an MSB.
Users can check the registration status of businesses through the "MSB Registration Search Page" on FinCEN's website. By entering a company's legal name, users can verify if the business is registered as an MSB.
However, the FBI warns that just because a company's name appears on the MSB registration search page does not imply government endorsement or validation of the company's legitimacy.
The FBI also advises caution when using cryptocurrency services known to be used for money laundering by criminals and recommends that victims of scams and suspicious activities report to the United States Internet Crime Complaint Center.
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